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Divorce/separation

Here you'll find divorce help and support from other Mners. For legal advice, you may find Advice Now guides useful.

Original poster

Inherited house

108 replies

SJMummy50 · 29/11/2022 19:15

Hi, bit of a unique one this, so not sure if anyone has similar experience. A few years ago my husband's parents transferred their house into his name but still remain living in it. It has no mortgage but husband obviously can't do anything with it whilst they still live in it (both in their 80s) but would it be counted as an asset as part of a divorce in any way? Thanks.

OP posts:
Quitelikeit · 29/11/2022 19:21

They could live for another 15 years at least

so unless you are planning to hang on in there for a serious length of time then I’m not sure it’s even worth bothering about

similarly if they went into a care home I’m sure there would be a strong case for deprivation of assets as essentially that’s why they done it?

Original poster
SJMummy50 · 29/11/2022 19:28

I thinking more it may be seen in a similar light as a pension - so could be used as leverage in negotiation rather then completely ignored.

OP posts:
Original poster
SJMummy50 · 29/11/2022 19:31

Sorry, I should also have added that the house is in Germany - so not sure how their laws work regard this.

OP posts:
Cluelessdiyer · 29/11/2022 19:33

I don’t know specifically- but I can’t see why it wouldn’t be an asset. I assume it was down to avoid inheritance tax.

maybe there even a scenario in an in theoretically you could force a sale to split the value! Not that I imagine you want to do that!

was there anything in the legaL docs saying it shouls
w ringfenced to him? (Not sure you can even do that)

Cluelessdiyer · 29/11/2022 19:34

A joint asset I should have said

Quitelikeit · 29/11/2022 19:35

Well I guess it’s ok to get your ducks in a row

if you don’t find an answer here definitely worth getting advice

just because his asset is in Germany if you divorce here then no reason why it would be excluded I don’t think

Original poster
SJMummy50 · 29/11/2022 20:08

His parents basically legally transferred it to him. No, I wouldn't and probably couldn't force a sale but I am thinking that he could potentially borrow against it in someway, so surely must be considered part of the overall pot, similar to a pension.

OP posts:
ThatEdgyFeeling · 29/11/2022 20:10

Of he did a Form E he would have to declare it.

Blueskythinking123 · 29/11/2022 20:17

I'm not sure I could morally ask for it to be included as it really isn't currently a marital asset.

LimeCheesecake · 29/11/2022 20:24

An old colleague had a similar problem, the house she grew up in was a large property in a holiday location. As her parents had aged, they’d bought a flat in the town near where she lived, and the family house effectively became a holiday home for the family. The parents put it in her name to avoid inheritance tax. Fine. Then her dh met someone else and started divorce proceedings.

when she asked for his pension to be included, he went for half of “her” holiday home. I believe in the end there was an agreement to stop it having to be sold that involved her ending up with a lot less than she would have done had her parents had just kept hold of their house.

morally it’s pretty crap through.

Original poster
SJMummy50 · 29/11/2022 20:46

Thanks. Agree with the moral angle but just to give balance to my situation, my husband has had an affair for the past 2 years and wants to drive me out the family home. I think ultimately it's leverage to try and get him to a more reasonable position.

OP posts:
LimeCheesecake · 29/11/2022 20:47

Then go for it. You are a 2 house owning couple.

Cluelessdiyer · 29/11/2022 20:49

I’m not sure why it’s not moral

marriage means assets are shared- including inheritances

if his parents and him decided to transfer the inheritance early for tax reasons - well - they decided to transfer the assets to you and your husband as a shared financial asset.

i don’t think I could kick them out - but I’d certainly include it in the asset base

DoYouRememberTheInnMiranda · 29/11/2022 20:50

I don't thinks it's immoral, unless it's immoral of the parents to have done it to avoided inheritance tax. Either they have genuinely given it to him, in which case it's a marital asset, or they haven't, in which case they are stealing from the taxpayer by pretending they have. They can't have it both ways.

DeeofDenmark · 29/11/2022 21:10

It is a marital asset. They can’t claim to own it when it suits them (divorce) but claim they don’t own it when it comes to paying inheritance tax. Obviously with sitting tenants it won’t be worth full market value.

millymollymoomoo · 29/11/2022 21:39

It’s not necessarily automatically included as a marital asset
it can be set aside if there are deemed to be enough assets on a needs basis to provide a fair settlement to you, if you’re already separated, if the asset has not been integrated into the family ( eg not cash thst 20 years ago was used to buy fmh etc)
so it’s not a given

there will be many unique factors pertinent to your own situation which will determine the split and whether this is included or not

you’d need legal advice

Original poster
SJMummy50 · 29/11/2022 22:09

Thank you. Yes, getting legal advice as just at start of process. My pension is bigger then his, but this inherited house he has (with his pension) is double my pension- if that makes sense. I can not buy him out 50% of family home, but am hoping I can negotiate to around 35/40% of home, using his inheritance as leverage. He could easily move elsewhere with that and it would mean two young children would have the consistancy of their family home, be it 50% of the week. But lets see.....

OP posts:
Jenny3412 · 29/11/2022 22:31

SJMummy50 · 29/11/2022 22:09

Thank you. Yes, getting legal advice as just at start of process. My pension is bigger then his, but this inherited house he has (with his pension) is double my pension- if that makes sense. I can not buy him out 50% of family home, but am hoping I can negotiate to around 35/40% of home, using his inheritance as leverage. He could easily move elsewhere with that and it would mean two young children would have the consistancy of their family home, be it 50% of the week. But lets see.....

Oh dear he sounds a real wanker to want to push his young kids out into the street. Hope u get a good settlement and good riddance to psychopath that caused you this grief. Only 2% affairs get to marriage and out of those 75% of marriages to affair partners fail. Hope that brings a smile to your face.

Randomperson99 · 30/11/2022 17:27

Disgusting. Immoral.grabby.

It's insane the law in England allows a grabby person like you to go after someones parents house.
What have you contributed towards the house? What claim do you have?
This is legalized theft

Cluelessdiyer · 30/11/2022 17:55

@Randomperson99 but it’s not the parents house is it? They have it away to a married couple. Probably to avoid tax

that also seems a bit grabby doesn’t it?

Fuuuuuckit · 30/11/2022 18:10

If the house is legally in his name then it's not an inheritance. It is HIS property, that his parents may or may not have some legal permission to live in.

As such it will need to be included in the marital pot. Thus you have 2 familial properties and will absolutely be considered as part of the divorce; you could definitely claim that he has much greater assets therefore less of a need from the rest of the matrimonial assets (which will include your marital home, pensions, savings etc).

They've put a huge asset in their son's name, I hope they have put something in Palace to allow them to stay living in it.

Take legal advice. Accept nothing before full financial disclosure.

Randomperson99 · 30/11/2022 18:10

The parents probably worked their whole life to pay off the house and maintain it and clearly want it to go to their son. It's immoral and grabby to try to include it in the pot. Simple as that. And in ever other jurisdiction we wouldn't need to discuss this..

Fuuuuuckit · 30/11/2022 18:14

FWIW I don't thing op is grabby at all. She is not stating that she wants a share of her in-law's house, just whether or not it should be included in the marital pot (which, yes it should). This could entitle her to a larger share of the rest of the 'pot' as her husband legally owns a second property; all perfectly above board. They could live another 15 years, they could die before Christmas, either way its not a potential inheritance issue as its already in his name.

Randomperson99 · 30/11/2022 18:21

It is still grabby. As she is trying to use it to get more of the rest of the pot!
Mathematically that is the same as getting part of the parents house.
Logical thinking not very popular on here though ..

It is inheritance. Just already received inheritance. Ridiculous. The poor parents who probably didn't think about anything crazy about English law.

CheckedPJ · 30/11/2022 18:23

If he owns it, yes it's an asset to be considered in divorce.

One of a number of risks in trying to avoid IHT/care costs this way.

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